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Seaport Global Securities initiated coverage on Canadian Pacific Railway Limited (NYSE: CP) with a Buy rating and a price target of $165.

Analyst Mark A. Levin said, "Hunter Harrison is approaching retirement, but his mark on the organization is indelible. In that vein, Keith Creel and the rest of the operating team have established a new standard for productivity, lowering CP's OR from nearly ~80% when they arrived four years ago to what likely will be a +/-55% 2016 exit rate. The question is how much lower can the OR go? We think the answer is at least a couple hundred basis points and that's without volume help. The good news is that a volume tailwind may finally be on the way. Bulk commodities (~40% of CP's book) are starting to work again and even intermodal saw some growth from Q2 to Q3. With plenty of operating leverage and a reasonable valuation (only 16.3x 2017 versus the group at 16.4x and the company's 16.8x Hunter Harrison era average), CP is one of our favorite names."

For an analyst ratings summary and ratings history on Canadian Pacific Railway Limited click here. For more ratings news on Canadian Pacific Railway Limited click here.

Shares of Canadian Pacific Railway Limited closed at $147.09 yesterday.